Is Your Price Action Signal Genuine?

How to distinguishing real price action signals from market noise...

Ever noticed how certain price action patterns sometimes just get quickly stopped out?

One minute you’re thinking: “Ah, finally a clear signal!”

And the next…

It gets reversed faster than you can say “stop loss”.

Why?

And what?

And again… why?!

Well, let’s put it this way…

Ever thought about what creates price action?

Here’s the kicker…

Price action isn’t just some random doodle on your chart, it’s the outcome of real market participants making moves.

But, which market participants are doing the moving?

That’s what you need to ask yourself.

Imagine this scenario:

A bullish pin bar appears during an FOMC meeting.

Now, what’s going on behind that move?!

You’ve got the big macro players loading up positions, and their actions come with some serious weight.

That pin bar isn’t just a fleeting moment of bullishness, it’s backed by a REAL macro sentiment.

Now, flip the script:

You see a similar bullish pin bar during the Asia session, no headlines, no news.

Sure, the pattern is there, but does it carry the same weight?

Not really.

The difference here lies in who is behind the move.

In the FOMC scenario, you’ve got heavyweight players who are shifting significant sums based on a REAL macroeconomic drive.

In the Asia session example, the move could simply be the work of retail traders or low impact market flows.

One scenario carries a narrative; the other might just be noise.

So, what’s the actionable takeaway for you?

It’s simple…

Don’t just jump on every pattern you see.

Instead, ask yourself:

“What really formed this pattern?”

Dig a little deeper.

Was it driven by a strong fundamental story?

Or is it just the random ebb and flow of the market?

Makes sense?

It’s NOT just about what you see on the chart, it’s about understanding why you see it.

The “why” behind a price signal is more important than the signal itself.

Because the best (most reliable) patterns come with a solid fundamental story.

If not, you might just be seeing… noise.

With that said…

The way for us to know whether you enjoy this type of content is to hit those cool buttons below, so don’t hesitate 😉 let us know.